Govt warns of property seizure for unpaid taxes

Ramanagara: In a bid to tighten property tax collections, the Karnataka government has amended the Karnataka Municipality Tax (Amendment) Rules, 1965, granting local bodies the authority to seize and auction movable and immovable properties of tax defaulters.

Under the new provisions, property owners receiving a ‘B’ Khata for unauthorized properties will face strict consequences if they fail to clear pending taxes. Following a demand notice, defaulters risk the seizure of bank accounts, gold, vehicles, and even homes. This rule, already in effect under the BBMP, will now extend to second-tier cities and towns across the state.

Tax-collecting officials face accountability too. Each failure to recover dues will result in a Rs 25,000 fine, increasing pressure on local authorities to meet collection targets. Initially, the draft included a jail clause for non-performing officers, but it was dropped after internal discussions.

Total urban local bodies are 316 (including 11 municipal corporations, 60 city municipalities, and 125 town panchayats) with total properties put at 58,02,657. Out of which, e-property accounts created are 20,59,618 and pending e-property accounts put at 37,43,039. Chief Minister Siddaramaiah has issued a three-month deadline for property owners to obtain ‘B’ Khata certificates, emphasizing no future allowances for unauthorized layouts. The move aims to enhance revenue while promoting accountability, but it has raised concerns among property owners questioning the sufficiency and implications of just holding a ‘B’ Khata.